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Hang Seng Index futures opened down 0.08% at 24,725 points, a discount of 27 points.On March 31, the State Administration for Market Regulation released a report on the progress of the 2025 "Quality Certification Improvement Action for Small and Micro Enterprises." According to statistics, a total of 1,816 supporting incentive policies were introduced nationwide, providing approximately 123.5 billion yuan in financial credit support such as "certification loans," and implementing 930 million yuan in fiscal subsidies. 488 certification bodies reduced or waived certification fees by approximately 100 million yuan, provided free training to 722,000 enterprises, provided targeted assistance to over 79,000 enterprises, resolved approximately 48,000 key quality issues, cultivated approximately 138,000 quality management talents, and indirectly created approximately 143,000 new jobs. Small and micro enterprises participating in the improvement action saw an average annual revenue increase of approximately 14.8%, an average profit margin increase of approximately 6.8%, and an average quality cost decrease of approximately 12.2%. Meanwhile, enterprises continued to increase their investment in innovation, with R&D investment as a percentage of revenue increasing by an average of 7.6%.March 31st - Both WTI and Brent crude oil prices continued to decline, falling more than 1% intraday, currently trading at $104.23/barrel and $106.82/barrel respectively. In related news, reports indicate that Trump is willing to end the war while the Taiwan Strait remains closed.March 31 - On March 30, local time, a village on Qeshm Island in southern Iran was attacked by the United States and Israel, resulting in eight deaths. Qeshm Island is Irans largest island and the largest island in the Persian Gulf, located north of the Strait of Hormuz.Japanese Finance Minister Satsuki Katayama: We are prepared to take all necessary measures in the foreign exchange market.

Crypto winter may temper fintech earnings

Jimmy Khan

Aug 04, 2022 14:41

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Wall Street has lowered earnings expectations for once high-flying fintechs Coinbase and Block, as a chill in the cryptocurrency market adds more pain to the companies already grappling with surging costs and rapidly rising rates.


Crypto exchange Coinbase is expected to report an adjusted loss in the second quarter, while Jack Dorsey-led payments company Block is likely to post a 70% drop in adjusted profit.


Coinbase, which has the biggest exposure to crypto volatility, has lost more than three quarters of its market capitalization this year.


“For Coinbase, this is going to be a very difficult 12 to 18 months,” said Dan Dolev, senior analyst, fintech equity research at Mizuho Securities USA.


Block, which changed its name from Square last year to better reflect its focus on blockchain, has lost over half of its market value amid the stock market rout this year.

The context

The cryptocurrency selloff has dragged down multiple companies in the sector, with some even seeking bankruptcy protection. Bitcoin, the largest cryptocurrency, has nearly halved in value in the first seven months of the year.


“There could be potential for double digit headcount reduction (at Coinbase) at some point because the cost is too high,” Dolev said.


Estimate cuts and competitive pressures are also contributing to the weakness in fintech stocks, according to Credit Suisse analysts.


The cryptocurrency sector may be slowly emerging from a bruising selloff, but they still have to contend with regulatory hurdles in the United States, the biggest market for such assets.


Online trading app Robinhood Markets Inc reported a 44% plunge in second-quarter earnings on Tuesday, a day earlier than expected, and said it would also cut 23% of its workforce.

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